Miami 3Q Home Sales Impacted by Hurricane Irma Closing Delays

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Minimal damage from Hurricane Irma stalled hundreds of Miami-Dade County home sales in the third quarter as local buyers and sellers experienced delays in clearing tree debris and rescheduling inspections and appraisals, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.

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Minimal damage from Hurricane Irma stalled hundreds of Miami-Dade County home sales in the third quarter as local buyers and sellers experienced delays in clearing tree debris and rescheduling inspections and appraisals, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.

Miami single-family home sales declined 16.3 percent year-over-year in the 3Q, from 3,433 to 2,874. Miami existing condo sales, which are competing with robust new construction, decreased 9.0 percent year-over-year in 3Q, from 3,318 to 3,021.

“Third quarter Miami home sales declined because of closing and inspection delays associated with Hurricane Irma,” said Christopher Zoller, the 2017 MIAMI Chairman of the Board and a Coral Gables Realtor. “Existing single-family and condos are expected to return to pre-Irma sales levels as Miami homes get re-inspected and stalled transactions finalize. Miami continues to boast a growing population and healthy employment — two fundamentals key for home sales.”

Hurricane Irma made landfall as a Category 4 storm in the lower Florida Keys on Sept. 10. The storm brought Category 1 winds to Miami and limited damage, mostly fallen trees. South Florida began preparing for the storm as early as Sept. 3, impacting nearly a full month of 3Q closings.

After the hurricane, most power and Internet wasn’t fully restored until Sept. 19. The storm left more than 3 million cubic yards of debris in Miami, according to Miami-Dade County Department of Solid Waste Management. The county has collected more than 3.2 million cubic yards of Hurricane Irma debris as of Oct. 30.

Miami Median Prices Rise for 23rd Consecutive Quarter
The median price for single-family homes in Miami-Dade County increased to $331,750 in the third quarter, a 10.6 percent jump from $300,000 in the same period last year. The median price for existing condominiums increased 4.8 percent year-over-year from $217,000 to $227,000.

Statewide, the median sales price for single-family existing homes in 3Q 2017 was $240,000, up 6.7 percent from the same time a year ago, according to Florida Realtors. The statewide median price for condo-townhouse properties during the quarter was $172,000, up 7.5 percent over the year-ago figure.

The national median existing single–family home price in the third quarter was $254,000, which is up 5.3 percent from the third quarter of 2016 ($241,300), according to the National Association of REALTORS® (NAR).

Historic low interest rates continue to make it more affordable to purchase homes. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.89 percent for 3Q 2017, higher than the 3.45 percent average recorded during the same quarter a year earlier.

Hottest Miami-Dade Neighborhoods in 3Q 2017
Months’ supply of inventory is a strong indicator of real estate activity. Top Miami neighborhoods with the lowest months of supply of inventory with significant closed sales activity in 3Q 2017:

Single-Family Homes
1. Virginia Gardens, located north of Miami International Airport, had 1.2 months supply
2. Richmond Heights, a South Dade community south of Kendall, had 1.3 months supply
3. Palmetto Estates, a South Dade community west of Palmetto Bay, had 1.6 months supply
4. Sweetwater, located south of Doral, had 2.0 months supply
5. Pinewood, a North Dade community west of Miami Shores, had 2.1 months supply

Condominiums
1. West Perrine, a South Dade community west of Palmetto Bay, had 2.3 months supply
2. The Crossings, a South Dade community west of Kendall, had 2.3 months supply
3. West Little River, located east of Hialeah, had 2.6 months supply
4. Three Lakes, a South Dade community west of Kendall, had 2.7 months supply
5. Miami Lakes, a North Dade community north of Hialeah, had 2.7 months supply

Total Sales Decline Due to Hurricane Irma
Total existing Miami-Dade County residential sales — which posted a record year in 2013 and near record years in 2014 and 2015 — declined 12.7 percent year-over-year in 3Q 2017 from 6,751 to 5,895. Minimal damage from Hurricane Irma stalled hundreds of Miami-Dade County home sales in the third quarter as local buyers and sellers experienced delays in clearing tree debris and rescheduling inspections and appraisals.

Total sales volume accounted for $2.5 billion in 3Q 2017, a decline from the $2.7 billion sales volume a year ago. The sales do not include Miami’s multi-billion dollar new construction condo market.

Total Miami distressed sales declined 42.4 percent year-over-year, from 1,061 transactions in 3Q 2016 to 611 in 3Q 2017. Only 10.4 percent of all closed residential sales in Miami were distressed in 3Q 2017, including REO (bank-owned properties) and short sales, compared to 15.7 percent in 3Q 2016. In 2009, distressed sales comprised nearly 70 percent of Miami sales.

Short sales and REOs accounted for 2.4 and 7.9 percent, respectively, of total Miami sales in 3Q 2017. Short sale transactions decreased 32.1 percent year-over-year while REOs fell 45.0 percent.

National, State Home Sales Decline in 3Q 2017
Nationwide existing–home sales, including single family and condos, declined 3.1 percent to a seasonally adjusted annual rate of 5.39 million in the third quarter from 5.56 million in the second quarter, according to NAR.

Seller’s Market for Single-Family Homes, Buyer’s Market for Condos
At the current sales pace, the number of active listings represents 5.7 months of inventory for single-family homes and 13.7 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.

Miami real estate had 20,894 active listings in the third quarter, a 2.1 percent increase from the 20,474 listings at the same time last year. The inventory for single-family homes decreased 4.8 percent, from 6,368 to 6,060. Miami existing condo inventory grew 5.2 percent, from 14,106 to 14,834.

Miami Homes Selling Close to List Price
The median percent of original list price received was 95.5 percent for single-family homes and 93.7 percent for condos in 3Q 2017.

The median time to contract for single-family home listings was 42 days, a 6.7 percent decrease from 45 days in 3Q 2016. The median time to contract for existing condos was 70 days, a 2.8 percent decrease from 72 days in 3Q 2016.

The median time to sale for single-family homes decreased 6.0 percent, from 100 days to 94. The median time to sale for existing condos decreased 8.8 percent, from 125 days to 114.

Miami Cash Sales about Double National Figure
Cash sales represented 39.9 percent of Miami closed sales in the third quarter of 2017, compared to 42.1 percent in 3Q 2016. About 20 percent of U.S. home properties are made in cash, according to the latest NAR statistics. The high percentage of cash buyers reflects Miami’s top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash.

About the MIAMI Association of REALTORS®
The MIAMI Association of REALTORS® was chartered by the National Association of Realtors in 1920 and is celebrating 97 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations, the Residential Association, the Realtors Commercial Alliance, the Broward Council, the Jupiter Tequesta Hobe Sound (JTHS-MIAMI) Council, the Young Professionals Network (YPN) Council and the award-winning International Council, it represents 45,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local Realtor association in the U.S., and has official partnerships with 165 international organizations worldwide. MIAMI’s official website is http://www.MiamiRealtors.com